Russell Street bomber could be released from jail within months

Speculation that Russell Street bomber Craig Minogue is applying for early release from prison has left his victims' families outraged and bewildered, with an investigating officer warning authorities to be cautious.

Minogue has served 29 years behind bars for the 1986 Russell Street bombing, which left 21-year-old police officer Angela Taylor dead.

Minogue detonated a car full of explosives outside the Victoria Police headquarters, killing Constable Taylor and injuring many others.

He was recently moved to Loddon Prison, a country facility that focuses on preparation for release and drug rehabilitation.

As well as the fatal bombing, Minogue is suspected of ordering the 1992 death of Prue Bird, a 13-year-old schoolgirl from Glenroy.

In 2012, Leslie Camilleri pleaded guilty to murdering Prue and claimed he acted alone. Police suspect it was revenge on behalf of Minogue for her grandmother being in a relationship with key bombing prosecution witness, Paul Hetzel.

Prue's mother Jenny said she is not happy about the transfer or the possibility of him being freed.

"It drags it all back to day one, all the fears that you feel," she said.

Mrs Bird said the Adult Parole Board needs to act cautiously.

"Has he changed? That's something they should really have a look at," she said.

Minogue also bashed to death fellow inmate Alex Tsamakis early in his prison term but was not given any extra time for the death.

He could be eligible for parole within nine months.

Senior investigator Gary Ayres arrested Minogue in Swan Hill in 1986 and said the Russell Street bombing was an act of terrorism.

"This was an attack on authority, they hated police and it was a direct attack, they wanted to kill as many as they could," he said.

Today the Adult Parole Board said Minogue had not yet applied for early release.

"The Adult Parole Board is not currently actively considering the release of Craig Minogue on parole," a spokesperson said.

Since March, Victorian prisoners have been able to apply for parole up to 12 months before the end of their non-parole period.